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Evaluating The Impact And Efficiency Of Agricultural Insurance In Nepal

Author

Listed:
  • Ishwor Shrestha

    (Agriculture and Forestry University, Rampur, Chitwan, Nepal)

Abstract

Agriculture in Nepal is increasingly vulnerable to climatic hazards, making the adoption of agriculture insurance a crucial strategy for safeguarding farmers’ livelihoods. The government provides an 80% subsidy on insurance premiums to encourage farmers’ participation in insurance activities. Despite the formal initiation of agricultural insurance in 2013, crop insurance adoption remains low compared to livestock insurance due to complex procedures and the need for field monitoring to assess insured amounts in damaged crops. The Nepal Insurance Authority plays a pivotal role in expanding the reach of agriculture insurance by encouraging non-life insurance companies to establish branches in all districts, fostering greater farmer engagement. Agriculture insurance not only enhances food security but also supports the economic development of the country by bridging the gap between risk management and sustainable agribusiness practices. This review article underscores the significance of agriculture and livestock insurance, outlines the Agriculture Insurance Operation Framework, discusses the current status, adoption, and challenges associated with the development of agricultural insurance in Nepal.

Suggested Citation

  • Ishwor Shrestha, 2024. "Evaluating The Impact And Efficiency Of Agricultural Insurance In Nepal," Food & Agribusiness Management (FABM), Zibeline International Publishing, vol. 5(2), pages 131-134, January.
    • Handle: RePEc:zib:zbfabm:v:5:y:2024:i:2:p:131-134
    DOI: 10.26480/fabm.02.2024.131.134
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    References listed on IDEAS

    as
    1. Olivier Mahul & Charles J. Stutley, 2010. "Government Support to Agricultural Insurance : Challenges and Options for Developing Countries," World Bank Publications - Books, The World Bank Group, number 2432, April.
    2. Alex Cowley & J. David Cummins, 2005. "Securitization of Life Insurance Assets and Liabilities," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 72(2), pages 193-226, June.
    Full references (including those not matched with items on IDEAS)

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